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TMI Blog2021 (11) TMI 327X X X X Extracts X X X X X X X X Extracts X X X X ..... eclaring Nil income. The assessment u/s 143(3) of the Act was completed on 27.03.2015 at the same Nil income. Thereafter, a proposal for revision was received from the AO, based on which, the ld. CIT carried out the revision by observing that the assessee entered into an agreement on 01.01.2011 with its related concern in India, viz., M/s. Alfa Laval India for supply of software licenses and IT support services. As per the Agreement, the assessee collected software license requirements of the Alfa group; negotiated with the third party vendors; and distributed such licenses usage to the group entities. Under the same Agreement, the assessee also provided other Information Technologies services to Alfa Laval India, which included overall IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould be worthwhile to have a glance at sub-section (1) of section 263 of the Act, which runs as under:- "The Commissioner may call for and examine the record of any proceeding under this Act, and if he considers that any order passed therein by the Assessing Officer is erroneous in so far as it is prejudicial to the interests of the revenue, he, may, after giving the assessee an opportunity of being heard and after making or causing to be made such inquiry as he deems necessary, pass such order thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment, or cancelling the assessment and directing a fresh assessment." 4. Sub-section (1) of section 263 of the Act is an enabling provision whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he proceedings under the Act, the condition for revision does not get magnetized. 5. It is trite that a power which vests exclusively in one authority, can't be invoked or cause to be invoked by another, either directly or indirectly. Section 263 of the Act confers power on the CIT to revise an assessment order, subject to certain conditions. Instantly, we are confronted with a situation in which the revision was initiated on the basis of the AO sending a proposal to the CIT and not on the CIT suo motu calling for and examining the record of the assessment proceedings and thereafter considering the assessment order erroneous and prejudicial to the interests of the revenue. The AO recommending a revision to the CIT has no statutory sanction ..... X X X X Extracts X X X X X X X X Extracts X X X X
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